Provides cash inflows, Project A has an initial cost of

Provides cash inflows

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Reference no: EM13875901

Project A has an initial cost of $80,000 and provides cash inflows of $34,000 a year for three years. Project B has an initial cost of $80,000 and produces a cash inflow of $114,000 in year three. The projects are martially exclusive. Which project(s) should you accept if the discount rate is 11.7 percent? What if the discount rate is 13.5 percent? A. Accept A as it always has the higher NPV. B. Accept B as it always has the higher NPV. C. Accept A at 11.7 percent and B at 13.5 percent. D. Accept B at 11.7 percent and A at 13.5 percent E. Accept A at 11.7 percent and neither at 13.5 percent

Reference no: EM13875901

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